Are These The Top Consumer Stocks Buy This Month? 4 For Your List.
Consumer stocks are in the spotlight as of late. Sure, the sector has played a vital role in supplying the general public with necessities amidst the pandemic. On the other hand, consumer discretionary stocks have also been on the uptrend as companies adapt to digital commerce. Overall, the industry is also riding on a series of stimulus package-related tailwinds at the moment. It is not surprising that mentions of the latest stimulus package have caused investors to flock to this group of stocks. With consumers across the nation getting paid, investors likely foresee a rise in consumer spending. Simply put, that is where the top consumer stocks come into play.
For starters, fast-food company Chipotle (NYSE: CMG) is on a tear, tripling in value since the March lows. Another company that comes to mind would be Etsy (NASDAQ: ETSY) that has skyrocketed by over 600% in the same period. Now, both companies are top consumer stocks in their own rights. Notably, the key aspect of both businesses is their strong digital ecosystems. For Chipotle, being able to serve its customers digitally continues to pay off for the company as it saw a 177% year-over-year increase in digital sales. For Etsy, its solid e-commerce foundation has propelled it to greater heights seeing revenue more than doubled in its recent quarter. After reading all this, let’s take a look at four trending consumer stocks to watch in the stock market today?
Top Consumer Stocks To Buy [Or Sell] In February
- Sonos Inc. (NASDAQ: SONO)
- Zynga Inc. (NASDAQ: ZNGA)
- PepsiCo Inc. (NASDAQ: PEP)
- Hasbro Inc. (NASDAQ: HAS)
Sonos Inc.
Starting us off is leading consumer audio tech company, Sonos. It develops and manufactures premium home audio products. To point out, it is also the inventor of multi-room wireless home audio systems. As you’d expect, Sonos would be a likely choice for consumers looking to improve their music listening experience at home. Similarly, SONO stock appears to be a hot choice for investors as well. It is up by over 120% in the past year. As the company is slated to release its first-quarter after Wednesday’s closing bell, investors might be watching eagerly.
Well, it’s worth pointing out that this quarter would include its holiday sales. It is common knowledge that consumer spending is usually at its peak during the year-end holidays. This would benefit Sonos as it provides quality products that customers can’t seem to get enough of. Evidently, it reported strong repurchasing habits from customers, accounting for 41% of total products registered. In theory, a bump in sales thanks to financial aid could benefit Sonos in the short and long-term. With all this in mind, would you say that SONO stock makes for a sound investment?
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Zynga Inc.
Another top consumer stock in focus right now would be Zynga. The company specializes in developing social video games on mobile and social networking platforms. With consumers having more funds to spend on their entertainment needs, the company could see a surge in in-game spending. For one thing, the company is set to report its fourth-quarter fiscal after market close on Wednesday. It has seen consistent quarterly revenue growth for the last four quarters. Could Zynga be looking at another record quarter? With ZNGA stock gaining by over 6% in the last five trading sessions, investors might believe so.
Important to note, Zynga makes a majority of its profits via in-game transactions and bookings. Given the pandemic-fueled acceleration, the company reported solid user-pay revenue in its recent quarter fiscal. In it, Zynga reported a 55% year-over-year jump in online game revenue adding up to $436 million. In terms of user-pay bookings, it saw a 69% growth at the same time equaling $561 million. Additionally, the company could see another tailwind as 5G technology rolls out, enabling higher quality mobile game experiences. With Zynga showing no signs of slowing down, could ZNGA stock follow suit? That remains to be seen.
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PepsiCo Inc.
Following that, we have consumer snacking giant PepsiCo. Its massive food and beverage portfolio consists of countless household names such as Frito-Lay, Gatorade, and Pepsi-Cola to name a few. Impressively, billions of consumers across over 200 countries worldwide enjoy its products day in and day out. Throughout the pandemic, PepsiCo has also been holding its own despite changing consumer spending habits. In fact, it even outpaced rival company Coca Cola (NYSE: KO) in terms of beverage sale volume growth in its recent quarter. In light of this, investors may be wondering if PEP stock is worth buying right now.
Well, the company appears to be keeping its momentum up even after a solid year. To investors’ delight, the company announced a 7% year-over-year increase in its quarterly dividend last week. Historically, this marks the 48th consecutive annual dividend increase from PepsiCo. Another recent development would be its collaboration with Beyond Meat (NASDAQ: BYND). The duo announced the formation of a joint venture, PLANeT Partnership, on January 26. In detail, the venture will develop, produce, and market snacks and beverages made from plant-based proteins. This is an excellent play by PepsiCo as it enters the vegan snacking market. All things considered, would you consider PEP stock a sweet deal?
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Hasbro Inc.
Hasbro is next up on our list. The Rhode Island-based multinational toy company is the name behind countless toys around the globe. It also has operations in the entertainment industry via its global eOne studio. Namely, Hasbro’s portfolio consists of several household IPs such as Transformers, Monopoly, Power Rangers, and Peppa Pig. As families remain homebound due to the pandemic, consumers would turn to Hasbro as a means of keeping their children entertained. Accordingly, HAS stock is making waves now with gains of over 100% since the March selloffs. In fact, the company reported its earnings earlier today.
Throughout the fourth quarter, Hasbro brought in total revenue of $1.72 billion and ended the quarter with $1.45 billion in cash on hand. By and large, these are respectable figures considering that Hasbro had to deal with physical store closures worldwide. CEO Brian Goldner explained, “Our teams successfully drove demand for several product categories across our portfolio including our entire gaming portfolio from Wizards of the Coast brands to face-to-face gaming. They found ways to reach the global consumer despite retail closures throughout the year, delivering over $1 billion in e-commerce revenues for the first time.” Given all of this, will you be investing in HAS stock?
